Quiet Week Begins with Euro Boost and Commodity Corrections

By Tomasz Wisniewski|

Published: July 08 2024, 09:19 GMT+0

Quiet Week Begins with Euro Boost and Commodity Corrections

Hello traders, and welcome to a new week. This Monday morning brings an interesting twist as the leftist parties won the French elections, boosting the Euro and European indices, albeit not as dramatically as some might have expected. The calendar today is rather empty, with no significant events, setting a calm tone for the start of the week.

Looking at the charts, we see the Euro gaining strength, though the movement is relatively modest. On the flip side, the Japanese Yen, Australian Dollar, and New Zealand Dollar are facing bearish corrections and losing ground. These currencies are clearly under pressure today.

Commodities are showing some notable moves. Oil is retreating, giving back a substantial portion of its recent gains—a trend that began late Friday and is continuing. Precious metals are also seeing a correction, indicating a short-term bearish sentiment. Meanwhile, European indices are on the rise, while American indices remain relatively flat. The Dow Jones is particularly interesting as it appears ready to break out of its sideways trend, likely to the upside.

As the week progresses, keep an eye on Tuesday’s speech from Jerome Powell. On Thursday, the US inflation data will be released—a crucial number that could significantly impact trading. This week is shaping up to be quieter, but Thursday’s data could introduce some volatility.

Source: https://www.axiory.com/analytics/market-news/quiet-week-begins-with-euro-boost-and-commodity-co